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Things You
Should Know:
Why Do I Need
Equine Liability Insurance?
If you
operate an equestrian business or organize
equine events, you know how much
planning and effort is involved to make the occasion
both safe and successful for everyone involved.
Even with the most careful planning, unexpected
situations can arise that you might not be prepared for.
Without adequate liability protection you will have to
pay damages and defense costs yourself. If the
damages and costs are high enough you may suffer
financial hardship or bankruptcy.
What Does The
Equine General Liability Policy Cover?
This
policy was specifically designed to protect your event
anywhere in the United States, it's territories or
Canada. The general liability policy will pay the
damages imposed upon you or your business by the law.
It also pays the cost of defending you when a claim is
made against your policy. Coverage is written on a
full occurrence basis by an Admitted, A rated US
insurance company and is tailored to fit your specific
event needs. The policy will also add the premises
owner, venue,
sponsors, volunteers and co-producers as additional insureds.
Certificate of
Insurance vs Additional Insured Endorsement
When
producing a special event you will often be asked to
provide a certificate of insurance
to verify the existence of insurance coverage under
specific conditions.
More specifically, the document lists the effective date
of the policy, the type of insurance coverage purchased,
and the types and dollar amount of applicable liability.
Frequently, another party such as the venue or a sponsor
will ask to be named as an additional insured on your
policy. The additional insured then enjoys the
benefits of being insured under your policy your for
negligent acts and omissions but not for his own
negligence.
What is Third Party Property Damage Liability (Care,
Custody, Control Liability)
Most liability policies have provisions that exclude
coverage for physical damage or loss to property while
it is in the care, custody or control of the insured.
Care, Custody, Control Liability (also known as Third
Party Property Damage) is an optional coverage that will
pay for negligent injury to horses under your control.
What is Waiver of Subrogation?
Very often,
a contract or lease agreement will
require one or both parties to waive their rights of
subrogation.
Subrogation
means one party has the right to "step into the shoes"
of another party for the purposes of bringing a claim
for damages. Suppose you experience a financial
loss due to the negligence of a third party.
Normally you could sue the responsible party for full
restitution but if your insurance company pays the claim
your insurer is then subrogated to your claim against
the negligent party. In essence, your insurance
company has been given your rights of recovery after
paying your claim. Before you sign a contract
containing a waiver of subrogation, check with your
insurance agent to be sure you are not violating any of
the terms of your insurance policy. If your policy
will not permit a waiver, you may be in danger of losing
your insurance coverage, leaving you without policy
proceeds or a cause of action against the other party.
If the insurance company does permit a waiver of
subrogation, it may be necessary to obtain an
endorsement to the policy and, in some cases, pay an
additional premium.
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